THE IMPACT OF THE PANDEMIC ON THE ECONOMY OF GEORGIA
Abstract
The pandemic caused by the coronavirus has caused strong shifts in the world economy. The impact of a pandemic on the world economy will be different and will depend on how long it takes to defeat it.
Particularly severe economic losses have been inflicted on countries where tourism has a large place in the economy. Georgia is one of such countries. The share of industry in the economy is currently 2.5 times lower than it was in the late 1980s. At the same time, Georgia is an import-dependent country, with more than 70% of its products imported from the domestic consumer market.
In recent years, tourism has become one of the most important sectors of the Georgian economy. Travel restrictions and closed borders are hurting Georgia's tourism sector.
The decrease in tourists is also reflected in the restaurant business, the turnover of shopping facilities, etc. Business is affected not only by the reduction of tourists, but also by various restrictions aimed at protecting distances. To assess the economic impact, it can be noted that, for example, in the field of tourism, according to the official data of 2019, 44,000 people were employed in restaurants and hotels alone.
An accurate prediction of what economic damage the pandemic will bring is impossible, as it is still unclear what nature the virus will behave in the future. Tourism, transport, small and medium-sized businesses, refining, oil and electricity, the financial sector, retail, the arts, sports, leisure and entertainment sectors, while the food-industry, communications, electricity, international sectors are the least affected. Shipping and more.
The negative impact of the pandemic on almost all sectors of the Georgian economy is significant. Revenues (from tourism, exports, net remittances) are declining, as well as both foreign and domestic investments, which have been negatively reflected in the exchange rate, etc.
Along with the restrictions and after their removal, anti-crisis measures were implemented on the basis of local and external funds attracted in the areas of business assistance, tourism promotion, support for agriculture and the development sector, as well as social assistance.
With gradual restrictions, Georgia prevented the rapid and mass spread of coronavirus infection in the country.
It should be noted that vital economic activity for the country has been maintained within the framework of the state of emergency in Georgia. More than 63 thousand economic entities worked smoothly.
As a result of the implemented measures, the economic activity in Georgia will gradually increase. If the process of vaccination against the virus is successfully implemented, the situation in Georgia from 2022 to the situation before the pandemic will quickly return.
Keywords: economic crisis, pandemic, statistics, regulations.
